Morning Bell 10 November

Wall Street ended the trading week mixed, as Tesla and artificial intelligence stocks put pressure on the Nasdaq. The Nasdaq closed 0.22% in the red, while the Dow Jones and S&P500 gained 0.16% and 0.13% respectively.

European markets were all in the red, amid concerns around artificial intelligence valuations. The STOXX600 closed 0.6% lower.

On Friday the ASX200 closed 0.66% in the red, with information technology and financials dragging down the market the most. Five of the eleven industry sectors were in the red.

What to watch today:

• However, our local market is set to regain some of those losses, with the SPI futures suggesting a 0.26% gain at the open this morning, amid investor optimism that a US government budget will end the government shutdown.
• Investors will also be watching ANZ Group (ASX:ANZ)today, set to release it’s full year results today. Macquarie analysts are expecting ANZ to report operating income of $22.3 billion, operating expenses of $12.74 billion, and cash earnings of $6.383 billion, in line with the consensus estimate.
• Looking at commodities:
  • Crude oil is ending the trading week up 0.54%, regaining some of the week’s loses, however overall, posted the second weekly loss as fears of a potential oversupply ccontinued to weigh on the market. OPEC+ output increased last month as key members resumed halted production, while non-OPEC producers also ramped up supply. In response, Saudi Arabia, the world’s largest oil exporter, slashed its December crude prices for Asian buyers.
  • Meanwhile, Gold has climbed 0.6% to US$4,000.98, supported by soft US economic data that fuelled expectations that the Fed could lower interest rates in December.
  • And iron ore reached the lowest in four months, amid poor demand. Steel exports out of China, the world's top producer, fell by more than 12% from the previous year. Despite this, iron ore imports were 10.2% higher reflecting the downward pressure on global demand for Chinese steel.

Trading ideas:

• Bell Potter maintains their Buy rating on REA Group (ASX:REA) following a mixed quarterly update from the online property services business. REA operated online property advertising, property-related services and financial services, which includes leading residential property website realeastate.com.au. Bell Potter have reduced their price target from $256.00 to $244.00, and at the current share price of $209.20, this implied 16.6% share price growth in a year.
• And Trading Central have identified a bullish signal in Metcash (ASX:MTS) indicating that the stock price may rise from the close of $3.92 to the range of $4.04 - $4.08 over 32 days, according to the standard principles of technical analysis.